Choosing a law firm succession plan
This is part three in our series on law firm succession planning – in this post we discuss how to choose a succession plan.
Now that you know why you should have a succession plan, and how to create a succession plan, it is also important to choose the right approach for your succession plan. This blog contains several options for you to consider.
- Close your law firm. This may seem like an easy option; however, it prevents you from capitalizing on the goodwill of your law firm. You have likely spent many years building your brand, developing goodwill, and creating value in your marketplace. Therefore, you probably have an opportunity to monetize this value via a properly created and executed succession plan.
- Partner with another law firm. Partnering with other attorneys is often an excellent option because working with another partner or law firm allows you to gradually transition out of your practice. This is a particularly good option for lawyers who enjoy maintaining certain client relationships. With this option, you may also choose to continue practicing via an “of counsel” arrangement during which time you may profit financially as you slowly exit the practice of law. This option also allows you significant negotiating latitude to find a deal that you like.
- Choose an in-house successor. This option is similar to what other industries would call a management buyout. Under this option, you choose an attorney who works with or for you to gradually take over your law firm. This can happen over a period of years or at a set time. This is also an excellent way to create additional compensation and/or incentive for one of your current staff attorneys.
- Sell your legal practice outright. You may choose to sell your law firm for maximum value. If you are ready to leave, and you do not have an in-house successor, then this may be your best option. Obviously, “value” is what someone else thinks it is worth, so if you are considering this option, it is generally a good idea to get a valuation done in advance of going to market, so you have a realistic view of what your firm may be worth.
For assistance with any legal matters related to your business or estate planning, contact Fournier Legal Services at jfournier@jeflegal.com or 860.670.3535 now for a free consultation and planning session.